The Federal Housing Finance Agency has reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.79 percent based on loans closed in February.

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The average interest rate on conventional, 30-year fixed-rate mortgage loans of $417,000 or less increased 12 basis points to 4.97 percent in February. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the Feb. 22-28 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-January.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.80 percent in February, up 10 basis points from 4.70 percent in January. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.92 percent in February, up 11 basis points from 4.81 percent in January.

This report contains no data on adjustable-rate mortgages due to insufficient sample size.

Initial fees and charges were 0.80 percent of the loan balance in February, unchanged from January. Thirty percent of the purchase-money mortgage loans originated in February were “no-point” mortgages, down from 34 percent in January. The average term was 27.2 years in February, down 0.1 years from 27.3 years in January. The average loan-to-price ratio in February was 74.7 percent, up 1.3 percent from 73.4 percent in January. The average loan amount was $216,900 in February, up $14,500 from $202,400 in January.